The Organization of the Petroleum Exporting Countries (OPEC) is forecasting increased global oil demand during 2019, Reuters reported.
OPEC maintained its estimates for the growth in demand in 2019 steady at 1.21 million barrels per day (b/d), but expects supply growth to slow in non-OPEC countries, including US shale producers, creating tighter market conditions.
“Supply growth is likely to be slower than last year amid the expected weaker global economic growth,” OPEC stated.
On the other hand, OPEC’s oil supply declined in April despite oil prices rising to more than $75 a barrel.
OPEC and its allies have agreed to cut oil output by 1.2 million b/d, starting from January 2019, and plan to meet on June 25-26 to decide whether to extend the agreement.